Accessibility
Albuquerque is the economic and geographic center of New Mexico. The cityâ&#x20AC;&#x2122;s Sunbelt location provides excellent access
to market centers in the Southwest, Central, and Western United States. Interstate 40 and Interstate 25 intersect in
Albuquerque providing fast access in all directions.
The city is a registered U.S. Port of Entry with its own customs facility, enabling freight cargo to be shipped directly
and duty paid locally. In addition, Albuquerque has a designated Foreign Trade Zone, allowing goods to be stored or
manufactured in the zone by foreign or domestic business without U.S. customs duty being imposed.

Principal Cities And Relational Distances
Albuquerque is in the heart of the Southwest, and its proximity to principal Western cities makes it an ideal location for
transportation and distribution.
From Albuquerque to:
Denver
Phoenix
Las Vegas
Salt Lake City
Dallas
San Antonio
Los Angeles
San Diego
Houston
St. Louis
San Francisco
New Orleans
Atlanta
Chicago
Seattle
New York

The International Herald Tribune has recognized the
Albuquerque International Sunport as the “least stressful”
airport in the world, based on traveler responses assessing the
services and experiences encountered at several airports
around the world.

Transportation

Air Transportation
Albuquerque International Sunport is served by eight major airlines
and four regional airline service providers. In 2005, the Sunport
handled an average of 540 takeoffs and landings per day. Southwest
Airlines is Albuquerque’s largest carrier, handling a little more than
50% of the airport’s 6.1 million passengers. Because of the city’s
temperate climate, the Sunport has reported just two temporary
runway closures over the past 10 years due to inclement weather.

Albuquerque MSA Location Profile
Transportation / Geography
Two major highways (I-25 and I-40) bisect the city, providing national
access for several motor freight companies in the city. New Mexico is a
net-consumptive state, resulting in very competitive outgoing freight rates.
Albuquerque rail service includes one freight line and one passenger line.
The Burlington Northern & Santa Fe Railway (BNSF) offers a north-south
line that connects in Albuquerque and an east-west line which connects
in Belen, located 40 miles south of Albuquerque. BNSF makes five trips
daily between Albuquerque and Belen.
Amtrak provides rail passenger service throughout New Mexico. The east-west route between Chicago and Los Angeles
passes through Albuquerque. Amtrak trains operate by contact over the Burlington Northern & Santa Fe tracks.
The Rail Runner Express, a new light rail system, serves the metro area from Belen in the south to Bernalillo in the
north. The service will be extended to Santa Fe by 2008.

Geography
Albuquerque is located on a high, semiarid plateau. Albuquerqueâ&#x20AC;&#x2122;s elevation of 5,311 feet makes it the highest
metropolitan city in America. Nearby Sandia Peak stretches 10,678 feet above sea level, offering a view of over 100
miles in any direction.
Located along the Rio Grande River basin, the city is bounded by the Sandia Mountains to the east and the volcanic
escarpment to the west. Both sides of the river offer wide expanses of land for growing population and industry. The
city of Albuquerque is located at 35 degrees latitude and 106 degrees longitude.

Climate
Albuquerque averages 304 days of sunshine each year
The metro averages 8.88 inches of rain a year and only 4.2 days of snow a year
Roughly 50% of the total annual precipitation occurs from June through September
The average annual relative humidity is 43.5 %
Natural disasters in the metro area are nearly non-existent

4

Albuquerque MSA Location Profile
Population

Population
According to 2008 estimates, the Albuquerque metropolitan statistical area (MSA) population totals 840,737. Between
1990 and 2000 (Census) the metro population increased 21.73 percent from 599,416 to 729,649.
A large portion of the metroâ&#x20AC;&#x2122;s growth has been on the west, with the bedroom communities of Rio Rancho and
Corrales. Between 1990 and 2000, Rio Rancho grew by 59.3 while Corrales grew by 34.5 percent.
County

Source: University of New Mexico, Bureau of Business & Economic Research.

5

The City of Albuquerque is among the top 10 Brainiest cities in
the nation, with 31.8% of its residents having a Bachelorâ&#x20AC;&#x2122;s
degree or higher.
- Bizjournals.com, June 2006

Albuquerque MSA Location Profile
Population

Age Distribution
The Albuquerque MSA is comprised of a young population. The average estimated age of an Albuquerque metro resident
is 36.7 years; over half of the population is under 45 years old.

65+
11.9%

45 - 64
25.5%

Under 18
25.1%
18 - 24
9.8%

25 - 44
27.8%

Source: Claritas Inc. 2008 Estimates.

Educational Attainment
On a percentage basis, Albuquerque MSA ranks among the top 25 largest metros in the nation for cities with the most
college graduates; 28.3 percent of persons 25 or older have a bachelorâ&#x20AC;&#x2122;s degree or higher. New Mexico also has one of
the largest concentrations of Ph.D.s per capita in the nation.

Adults 25 Years and Older
Graduate or
Professional
College
Graduate
(Assoc/Bach)

11.6%

Some High
School or Less
15.9%

22.7%
25.9%
23.9%

High School
Graduate

Some
College

Source: Claritas Inc. 2008 Estimates.

6

Albuquerque MSA Location Profile
Diversity

Diversity Distribution
New Mexico has long been known for its unique ethnic and cultural diversity, which are defining features of the social
landscape. Since the majority of New Mexico’s population is concentrated in Albuquerque, the area benefits from a
wide variety of cultural activities and celebrations as well as business diversity. The city and state’s sundry population
benefits companies who are looking for a diverse work force.
According to the 2000 Census, 35.5 percent of New Mexico’s population is bilingual. Of the state’s bilingual
population, the majority (78 percent) speak Spanish/English.
Other Race
0.2%
American
Indian/Alaska
Native 5.2%

Native Hawaiian
/Pacific Islander
0.1%

Asian 1.6%

Two or More
Races 1.8%

African American
2.4%

White
44.5%

Hispanic or
Latino
44.3%

Source: Claritas Inc. 2008 Estimates.

New Mexico’s Pueblos and Tribes
In addition to encompassing a large Hispanic/Latino population, Albuquerque’s Native American population offers its

own unique culture and traditions to the Albuquerque area. Albuquerque is home to the largest powwow (The
Gathering of Nations) in North America.

7

Albuquerque MSA Location Profile
Wages & Income

Income
The estimated median household income for the Albuquerque Metropolitan Area is $46,945 while the per capita income
averages $24,492.

Number of Households within Income Ranges
2008 Estimates
More than $500,000

0.4%

1,333

$250,000 to $499,999

1.1%

$150,000 to $249,999

3.7%

$100,000 to $149,999

10.5%

$75,000 to $99,999

11.2%

$50,000 to $74,999

19.7%

$35,000 to $49,999

16.6%

$25,000 to $34,999

12.0%

$15,000 to $24,999

11.8%

Less than $15,000

13.0%

3,545

0

12,224
34,591
36,978
64,766
54,764
39,601
38,726
42,652
10,000

20,000

30,000

40,000

Income

Dollars

Average Household Income
Median Household Income
Per Capita Income

$61,946
$46,945
$24,492

50,000

60,000

70,000

Source: Claritas Inc 2008 Estimates.

8

Albuquerque MSA Location Profile
Wages & Income

Wages and Income
According to the most current Occupational Employment and Wage Estimates, management occupations top the list for
paying the highest average hourly mean wage in Albuquerque followed by architecture and engineering related
occupations.

Cost of Living
Albuquerque is consistently near the national average mark of the ACCRA Quarterly Cost of Living Index. This study
measures intercity differences in the costs of consumer goods and services, excluding taxes and non-consumer
expenditures. The index is based on 57 items, with100 being the index average standard.
The Albuquerque area 1st quarter 2008 ACCRA Cost of Living Index was 95.5 which is below the index average.

Housing Market
The relatively low cost of living and availability of affordable housing has caused home ownership to soar throughout the
Albuquerque metro area. According to 2007 estimates, nearly 70% of the homes in the Albuquerque metro area are
owner occupied. The metro area offers home owners an array of housing styles in both an urban and rural environment.
In first quarter 2008, the median sales price of an existing single-family home in the metro area was $190,500, three
percent lower than the national median and thirty-six percent lower than the western median of $296,300.

Housing Rental Rates
The area offers residents an array of housing prices and construction styles. Nonetheless, the Albuquerque area has a
large supply of affordable rental housing. There are some 79,000 apartment units in Albuquerque. In addition, several
new constructions are underway, particularly in the downtown area.

Albuquerque ranked 13th best mid-sized metro
for public schools.
Expansion Management, December 2007

Albuquerque MSA Location Profile
Education

Primary Education
The city of Albuquerque has one school district: Albuquerque Public Schools (APS). In the 2006-2007 school year,
94,580 students attended one of 165 APS schools. APS consists of 83 elementary schools, 26 middle schools, 11 high
schools, 9 alternative schools, and 36 charter schools. The APS district employs more than 14,000 personnel.
APS schools perform well in standardized testing as well as in other methods of measuring success. Eighty-three
percent of APS tenth graders pass the New Mexico High School Competency Exam. APS teacher to pupil ratios are also
relatively low:
High School
1:17
Middle School
1:15.3
Elementary School
1:14.9
Rio Rancho, Los Lunas, Belen, and Moriarty each have their own school districts with a total of more than 31,200
students.
The Albuquerque MSA also has an excellent selection of private and parochial schools. Parents and students can choose
from over 40 private or parochial schools in the community. The Albuquerque Academy is considered to be one of the
areaâ&#x20AC;&#x2122;s top private, nondenominational schools and is first among area independent schools in endowment. Some of the
larger private/parochial schools include:
Albuquerque Academy
Bosque Preparatory

Manzano Day School
Menaul School

Mountain View Academy
Sandia Heights Academy

Sandia Preparatory School
St. Pius X High School

13

Albuquerque MSA Location Profile
Education

Lottery Funded Scholarships
All resident New Mexican high school students with at least a 2.5 out of 4.0 grade point average are eligible for a New
Mexico Lottery Scholarship, which pays for students to attend a state college tuition free. The scholarship is funded by a
New Mexico Lottery program in which 100 percent of lottery net proceeds go to the Lottery Tuition Fund.
The lottery scholarship pays for eight semesters of tuition, beginning with the studentâ&#x20AC;&#x2122;s second semester, providing the
student attends full-time and maintains a 2.5 out of 4.0 GPA. The lottery program has improved the public education
system in the state as New Mexico colleges and universities have reported record enrollment since the program began
eleven years ago. Since 1996, the New Mexico Lottery has raised more than $300 million and more than 43,000 students
from across the state have attended New Mexico public colleges, universities and technical colleges with the help of a
Lottery Success Scholarship.

Higher Education
Albuquerque has an excellent higher educational system as well. The University of New Mexico (UNM) and
Central NM Community College (CNM) each offer first-rate curriculum to more than 23,000 students. In addition, many
other institutions of higher education are located in the area.
Institution
Enrollment
Central NM Community College
26,000
College of Santa Fe
900
Highlands University
500
ITT Technical
625
National American University
570
Pima Medical Institute
500
SW Indian Polytechnic Institute
485
University of New Mexico (main campus) 25,820
University of Phoenix
1,450
Webster University
470

The University of New Mexico’s graduate programs in law,
engineering and medicine rank among the best in the nation.
- U.S. News & World Report, 2008

Albuquerque MSA Location Profile
Education
The University of New Mexico (UNM)
The University of New Mexico (UNM) has more than 25,000 students at its 600-acre
Albuquerque campus, and over 32,000 students statewide. UNM has more than 5,500
student enrolled in graduate and professional degree programs. UNM’s Division of
Continuing Education and Community Services serves approximately 20,000 students
annually in various certificate courses, workshops and training sessions.
UNM offers bachelor’s degrees in more than 140 accredited disciplines, master’s degrees
in 83 fields and doctoral degrees in 42 areas, as well as degrees in law and medicine.
As the state’s major research university, UNM enrolls 80% of New Mexico’s Ph.D. candidates. UNM’s excellent research
facilities include:
Center for Advanced Studies
Center for Micro-Engineered Materials
New Mexico Engineering Research Institute
High Performance Computing Education &
Research Center

Central New Mexico Community College (CNM, Formerly TVI)
CNM is New Mexico’s largest and most comprehensive community college. Over 26,000 students take advantage of
CNM’s certificate programs, associate degrees, and continuing education offerings at its four Albuquerque campuses.
Instructional departments include technologies, trades, business occupations, arts and sciences, developmental studies,
and health occupations.
CNM has a wide selection of continuing education programs and specializes in developing its nationally recognized
customized training programs to meet specific company needs. Through its customized workshops, courses and training
programs, CNM has earned a reputation as a key industry partner in developing and training New Mexico’s productive
work force.

15

Albuquerque MSA Location Profile
Healthcare

Healthcare
Albuquerque is the center for advanced medical treatment for the state of New Mexico, as well as portions of eastern
Arizona, southern Colorado, and west Texas. Because the cityâ&#x20AC;&#x2122;s area of influence is so wide, the number of facilities and
the extent of care available to the local resident is much greater than that of most cities its size. Additionally, several of
the cityâ&#x20AC;&#x2122;s hospitals, research organizations, and medical research corporations have gained a national reputation for their
innovative techniques, products and programs.
Presbyterian Hospital ranked 7th in the U.S. among more than 500 integrated healthcare networks in a
2005 nationwide study.
The University of New Mexico Hospital has been named one of the top 15 Major Teaching Performance
Improvement Hospitals in a 2005 nationwide study.
The Albuquerque metro area has more than 2,300 medical and osteopathic doctors and some 300 practicing
dentists.
The metro area has seven general hospitals with approximately 1,800 beds.
M ajor Hos pitals *
P resbyterian
University of New Mexico
Lovelace Medical Center - Downtown
New Mexico Veterans Affairs
Lovelace Hospital
Lovelace Westside Hospital
P resbyterian Kaseman Hospital

Albuquerque #1 Fittest City in America
“And no Wonder. Albuquerque’s natural resources are
abundant...providing city dwellers with an imposing and daily
connection to nature.”
- Men’s Fitness, March 2007

There are hundreds of parks throughout the city and over 80 miles of running and biking trails
New Mexico has 31 State Parks and 13 National Parks
Albuquerque has purchased and dedicated nearly 25,000 acres as permanent open space
Petroglyph National Monument on Albuquerque’s Westside preserves tens of thousands of Native American
petroglyphs
From Thanksgiving to Easter there is normally sufficient snow at the higher elevations for
downhill and cross-country skiing. For dazzling views and access to skiing and wilderness
areas, residents and visitors can take the Sandia Peak Tram, the longest single-span tram in
the world. Other popular activities in the area include hot air ballooning, golfing, mountain climbing, hunting, fishing, and hang-gliding.
Sports fans appreciate the city’s amateur and professional sports teams. The Albuquerque
Thunderbirds, part of the NBA Development League, is Albuquerque’s newest sports team. The area’s Triple A baseball
team, the Albuquerque Isotopes, entertain fans in a new multimillion dollar stadium. Isotopes Park, a nationally
acclaimed stadium, also hosts Major League Baseball games. In addition to these popular professional teams, the
community also rallies around the University of New Mexico’s 16 varsity teams.
Albuquerque is home to the Rio Grande Zoological Park, a nationally recognized 60-acre zoo
Other city attractions include the Albuquerque Biological Park, which contains an extensive aquarium
and botanical garden
The Natural History Museum, which houses the LodeStar Astronomy Center
Cliff’s Amusement Park

17

Albuquerque MSA Location Profile
Recreation & Culture

Culture
The Albuquerque-Santa Fe Region has become a nationally recognized mecca for
the arts, offering audiences everything from innovative theater to brilliant
classical performances. The area is a prolific art center offering a vast array of
visual and musical arts, and is home to numerous artists of rare talent. Local
galleries offer a rich display of local, national and international art.
Santa Fe Opera

Albuquerque has over 40 art galleries, 20 museums and some 30 performing arts groups while Santa Fe boasts 250 art
galleries, 12 museums and some 20 performing arts groups. Albuquerqueâ&#x20AC;&#x2122;s performing arts are vibrant with nearly a
dozen drama companies, opera, ballet, the June Music Festival (chamber music), various choral groups, the
Albuquerque Youth Symphony, and the New Mexico Symphony Orchestra. In addition to these resident professional
groups, the University of New Mexico offers excellent facilities for guest artists and road-show series.
Albuquerque is home to the National Hispanic Cultural Center and the Indian Pueblo Cultural Center. Both facilities
offer traditional art and cultural exhibits, craft demonstrations, museums, restaurants, and gift shops.

“Albuquerque rated best among the various factors that
we studied, including quality of labor, operating costs,
electric reliability, transportation and leadership support.”
- Robert Trussell, Jr., Tempur-Pedic International CEO

Albuquerque MSA Location Profile
Workforce

Labor
The Albuquerque metro region has a substantial labor force in terms of both size and productivity. In May 2008
Albuquerque’s labor force was approximately 409,600 with a seasonally adjusted unemployment rate of 3.8 percent.
Over the year, the metro area employment growth was 0.5 percent with the addition of 2,100 jobs. Expansions were
seen within nine of the twelve major industries confirming the overall strength of the metro economy. Albuquerque
accounts for nearly 47 percent of the state’s total non-agricultural employment.
Albuque rque MSA Historica l Civilia n La bor Force *
Labor Force

Numbers may not add to 100% due to rounding.
Source: New Mexico Department of Workforce Solutions, Economic Research & Analysis Bureau

Workforce Productivity & Union Activity
New Mexicans exhibit an unusually high level of productivity in the workforce. New Mexico’s labor force is often sited
by various studies, including ones by Grant Thornton and Expansion Management as being first in the nation for
workforce productivity. Most recently, a study conducted by Area Development Magazine, ranked the Albuquerque metro
area number one for manufacturing productivity in terms of dollars of output per worker. In addition, a study
conducted by The Pathfinders group, found that 72% of Albuquerque employers polled considered workforce
productivity to be “Good to Excellent.”
New Mexico is a non-Right-to-Work state. However, only 11.2 percent of Albuquerque’s total workforce is unionized, of
which 4.6 percent is employed in private industry. The vast majority of unionized operations are public employees,
major food chains, and teachers.

20

Albuquerque MSA Location Profile
Workforce Development

Workforce Development
Department of Labor (www.dol.state.nm.us)
The New Mexico Department of Labor operates three workforce development centers in the MSA. The Workforce
Development Centers match the needs of employers with the skills of job seekers by offering the following benefits
to employers looking for local labor:
Federal & state tax credits
Internet recruitment

Recruitment assistance
On-the-job training program

Labor market information
Pre-screening assistance

The Department, at no charge, will pre-screen applicants to a client’s basic criteria, turning over a list of those meeting
the criteria to the company for further interview.

CNM Workforce Training Center (www.cnm.edu/campus/wtc/index.php)
The CNM Workforce Training Center has a wide selection of continuing education programs and specializes in developing
customized training programs to meet specific company needs. It is through its customized workshops, courses and
training programs that CNM has earned its national reputation as a key industry partner in developing and training New
Mexico’s most productive workforce.
CNM’s Workforce Training Center is housed in a new facility that offers video-conferencing capabilities, a high-bay area
for large pieces of equipment, computer stations, general office space, and classrooms for over 900 students.
CNM can assist in a company’s training programs in the following ways:
Make instructors available on-site to teach CNM courses or customize training programs defined by the
company. These programs can include classroom and production floor work.
Lease equipment or use the company’s equipment on or off-site to train employees or potential employees on
the use of specialized equipment. An off-site pre-employment training program can be used to help identify the
best qualified applicants prior to their hire.
CNM charges a $50/hour instructional service fee (including preparation time). If these services are used in conjunction
with the Job Training Incentive Program, the services are offered at no cost.

21

Albuquerque MSA Location Profile
Workforce Development

Workforce Development, continued
UNM Career Works (505) 277-0562
UNM CAREER Works is a UNM Division of Continuing Education and Community Services Project that helps employers to
find reliable, motivated employees. UNM CAREER Works helps qualified residents of Bernalillo County to make
responsible choices, which will gain them entry into the paid workforce and opportunities for the pursuit of career
paths.
UNM CAREER Works provides the following services to qualified residents of Bernalillo County:
• Assessment of skills, employment history and educational levels
• Streamlined employability skills training, including job-seeking, workplace orientation,
communication and computer skills
• Job placement assistance
• Job retention and career path guidance
• Networking with the region’s employers to identify paid jobs and meaningful career paths
for qualified applicants
• Access to skills training consistent with the competitive needs of today’s quality workforce.

22

Albuquerque MSA Location Profile
Technology

Science and Technology Corridor
Manufacturing and service related companies have the opportunity to tap into one of the world’s greatest concentrations
of technology assets within the Albuquerque metro area. The New Mexico Technology Corridor, stretching from Los
Alamos National Laboratory northwest of Santa Fe to New Mexico State University just north of the Mexican border,
contains an array of technology-based organizations. Renowned institutions along this corridor include:
Sandia National Laboratories - Albuquerque
University of New Mexico - Albuquerque
Lovelace Respiratory Research Institute - Albuquerque
Air Force Research Laboratory - Albuquerque
Los Alamos National Laboratory
The Santa Fe Institute
White Sands Missile Range
New Mexico Institute of Mining and Technology
New Mexico State University
Other high technology benefits include:
• One of the nation’s highest per capita
concentrations of engineers and scientists
• One of the largest expenditures of R&D money
per capita in the U.S.
• A large selection of competitive, easily accessible,
state-of-the-art research labs
• Cooperative research and development partners
already collaborating on high-technology projects
with the area’s national laboratories
• A vast network of quality high-technology vendors and suppliers
• An unrivaled fiber-optic information infrastructure along the corridor

Map courtesy of Sandia Science & Technology Park

23

Albuquerque MSA Location Profile
Technology

Technology Commercialization
With nine world-class science, technology and R&D centers, New Mexicoâ&#x20AC;&#x2122;s entrepreneurial climate is unique, and both
the state and the city of Albuquerque offers innovative programs to capitalize on technology transfer
opportunities.
One catalyst moving technology to the private sectors is Technology Ventures Corporation (TVC). TVC is a nonprofit
organization founded by Lockheed Martin to help identify technologies with commercial potential, develop business
capabilities, and seek capital. TVC has brought over $300 million in investment to the state, creating some 40 new
businesses and over 3,125 jobs. TVC (www.techventures.org) assists entrepreneurs seeking help in commercialization
and investors seeking profitable investment opportunities in New Mexico.
The state has instituted programs to lure more VCs into the area as well as programs that allow the state to directly invest
in new and expanding companies.
Sandia has instituted an entrepreneur leave-of-absence program. Engineers at the lab can take up to two years leave
of absence from their federal government jobs to work in the private sector. Typically, these spin-offs are in the
semiconductor, optics, aeronautics, and environmental sectors.
The U.S. Department of Energy also transfers engineers into the private sector on a contract basis using a technical
assistance program. The federal government has a program in place which subsidizes area businesses who want to hire a
Sandia engineer on a short-term basis to solve a tricky manufacturing or materials handling problem.

24

New Mexico ranks 3rd on Small Tech Hot Spots List.
- Small Times Magazine, July 2007

Albuquerque MSA Location Profile
Technology

The Flying Forty
The 2007 Flying Forty is a list of New Mexicoâ&#x20AC;&#x2122;s top grossing high tech companies. In fiscal year 2006, total revenue from
the high tech companies was some $723 million and total employment was more than 4,200 employees.
C om pany N am e

D escription

A ffordable Solar G roup, LLC

D esigns and distributes renew able energy systems for residential, commercial and industrial use

A gilO ptics Inc.
A pplied R esearch A ssociates, Inc.

R& D , Provider of deformable optic systems
Engineering, research and development

*Kirtland's civilian employment number includes all Department of Energy employees, including Sandia National Labs and contractors employed on and off base. Please note that the
major change in employment between FY05 and FY06 is due to a data collection change (inclusion of off base contractors) and not an increase in employment.
Note: Figures updated annually and as data regarding changes in employment becomes available. Subject to revision.

Real Estate
Office Market
The Albuquerque metro area is often recognized as one of the best business real estate markets in the nation. The area
has abundant real estate choices and affordable prices. The diversity of Albuquerqueâ&#x20AC;&#x2122;s market provides a variety of
locations for office and industrial companies seeking to expand or relocate. In addition, there are competitive build-tosuit opportunities across the metro area.
Although office growth is substantial throughout the city, a fair amount of development has been on the cityâ&#x20AC;&#x2122;s West Side
while the North I-25 Corridor continues to be a hot spot for development. The fourth quarter proved to be a good
period for Downtown, which experienced the highest level of space absorbed market wide.
First Quarter 2008
The office market totals 12.5 million square feet
The office vacancy rate is 11.0%
Average rental rate for class A is $21.35 per square foot/yr
Average rental rate for class B is $17.35 per square foot/yr

Real Estate, continued
Industrial Market
The population and business growth on the West Side has led to the development of several industrial properties that
can accommodate users of multiple sizes and industries. Nonetheless, there is available industrial sites throughout the
metro area, including a number of industrial parks. Industrial property in the Albuquerque metro area is fairly
inexpensive for companies looking to expand or relocate.
First Quarter 2008
The industrial market totals 35.9 million square feet
Industrial vacancy rate is 6.4%
Average asking rate for general industrial is $8.08 per square foot/yr
Average Asking Rate by product type
1st Quater 2008
$10.00
$9.00
$8.16
$8.00

PNM is recognized by Edison Electric
Institute as one of the most reliable electric
service providers in the nation.

Albuquerque MSA Location Profile
Utilities

Electricity & Natural Gas
Albuquerque electricity is provided by the Public Service Company of New Mexico (PNM), an investor-owned electric and
gas utility. PNM serves about 100 communities in New Mexico. New Mexico has an abundant supply of electricity from
coal-burning plants (primary), natural gas, hydropower, and petroleum sources.
PNM is able to supply reasonably priced, large quantities of electricity for residential and commercial use. The supply
and relative low-cost of energy helps the Albuquerque MSA continue to develop and employ in all sectors of the economy.
PNM also is able to maintain an excellent reliability record. Over the past ten years, they have maintained an average
reliability rating of 99.986%.
Albuquerqueâ&#x20AC;&#x2122;s natural gas is also provided by the Public Service Company of New Mexico. Since New Mexico is the
fourth largest gas producer in the United States and has the second largest reserves in the U.S., Albuquerque has an
abundance of natural gas at costs among the lowest in the nation. PNM also offers large gas users the option of
purchasing gas from a third party and transporting it over PNM lines.

Telecommunications
Albuquerque benefits from the use of digital technology by Qwest, Time Warner Telecom, Xspedius (formerly e.spire
Communications), and MCI. A more recent entrant, McLeod USA, is building its fiber network and currently offers both
long distance and local dial tone service. Qwest employs digital technology throughout most of its Albuquerque facilities
with the local central office a 5ESS Digital Switch; Time Warner, Xspedius and MCI are 100% digitally switched. There
are POPs throughout the metro area, most notably in the North I-25 Corridor and Downtown. There is a sonet ring
around these areas.
Qwest offers a variety of service plans to respond to any system or circuit problem and its central office has 24-hour
technical support. Redundancy and rerouting are available (at an extra cost). MCI and Xspedius both provide all-digital
services, a wide variety of service plans and 24-hour technical support; services include DS 1, DS 3 and OC 3. Also, New
Mexico has rapid deployment of Frame Relay Services; fast package data systems run on T1 and 56K service.
Albuquerque is also home to a data co-location facility (www.bigbyte.cc). The 65,000 square foot building in the heart
of Downtown offers 450 volts of electricity per square foot. Over 100 wired telecom cages are available to business
networks.
Long distance carriers with a significant presence in the city include AT&T, LDDS Worldcom, NTS Communications,
Sprint, Qwest, and Valu-Line Long Distance. All long distance carriers have T1 capability.

30

Albuquerque MSA Location Profile
Utilities

Water
The City of Albuquerque has taken a number of far-reaching steps in the past few years to ensure an adequate, safe, and
guaranteed supply of water for residential, commercial, and industrial uses well into the future.
Albuquerque’s water comes from an underground aquifer. The City adopted a plan for water management that includes
the use of river water, recycled water, ground water from the shallow aquifer, and water from the deep aquifer to protect
the city’s water supply. The City also owns a substantial amount of water from the San Juan-Chama Diversion Project in
Northern New Mexico, which, beginning in 2008, will infuse more than 15 billion gallons of water annually into the city.
Not only is the City examining other sources of water, it is emphasizing the importance of water conservation in all areas
of use. Since 1994, Albuquerque reduced its water usage by 38 percent. The majority of the conservation has come
from residential and institutional customers. Simple financial incentives for utilizing low-flow toilets, and “xeriscaping”
instead of landscaping, have significantly helped this conservation process.
Together, these steps have helped Albuquerque ensure that there will be ample quantities of clean, safe water for
business and residential use in the future.

Water in
Billions of
Gallons1

Number of
Accounts2

41.00

171,984
168,613

39.00
37.00

175,000
170,000

163,743

165,000

160,893

35.00

Gallons of W ater
160,000

157,006

33.00

Number of Accounts

153,427

31.00

155,000

150,218

150,000

147,411

29.00

144,675

27.00

145,000

141,650
139,220

25.00

140,000

136,868

23.00
133,000

135,000

21.00
130,000

19.00

125,000

17.00
15.00

40.78

39.30

36.12

37.18

35.97

37.47

36.14

35.16

35.06

32.97

33.40

31.75

32.90

120,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

1 Water use in billions of gallons produced, not sold. About 10% of the water is lost through leaks as it is delivered.
2 Average number of accounts per year; includes Residential, Commercial, Industrial & Institutional customers.
Source: Albuquerque Bernalillo County Water Utility Department

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“(Gov.) Bill Richardson has cut New Mexico’s top rate of
personal income tax to 5 percent from 8.2 percent,
reduced the capital gains tax and kept spending in check.”
- The Wall Street Journal editorial, February 2005

Albuquerque MSA Location Profile
Taxes

Corporate Taxes
Franchise Tax
Each corporation engaged in business in New Mexico and submitting a corporate income tax return must pay a franchise
tax of $50 per year.

Calculating Corporate Income Tax
Corporate income taxes “piggyback” on federal taxable income using the three factor formula: property, payroll and
sales in New Mexico calculated as a percentage of the corporation’s property, payroll and sales. A corporation may select
one of three methods for reporting their state corporate income tax: Separate corporate entity, combination of domestic
unitary corporations or federal consolidated group. New Mexico utilizes the “throwback rule,” which requires a New
Mexico plant which sells its product or service in a political subdivision outside the state to count those sales as New
Mexico sales.

Corporate Income Tax Brackets
If Net Income Is
$1 to $500,000
$500,000 to $1,000,000
$1,000,000 and over

The Tax Shall Be:
4.8% of net income
$24,000 + 6.4% in excess of $500,000
$56,000 + 7.6% in excess of $1,000,000

Double Weighting the Sales Option
Companies can elect to double weight the sales, in which a corporation takes the New Mexico portion of plant, payroll,
sales and sales (counting the sales twice) and uses a divisor of four. Double weighting the sales benefits manufacturers
who have a significant investment in plant and payroll in New Mexico but sell most of their product outside the state.

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Albuquerque MSA Location Profile
Taxes
Unemployment Compensation
Employers must make quarterly unemployment compensation contributions. For newly located firms, the initial
contribution is 2.0 percent of the employee’s Taxable Wage Base for the first four years. After the four-year period, each
employer is given an experience rating which can cause a rate to increase or decrease. The Taxable Wage Base for the
year 2008 is $19,900.

Workers’ Compensation
New Mexico’s direct-loss ratio of 28.8 percent makes the state a model for workers’ compensation. Reasons for the
state’s workers’ compensation success include: lack of incentives to file frivolous claims, limited reliance on lawyers
and litigation to settle cases, capped legal fees, and contained medical costs. Employers must make quarterly payments
to the Workers’ Compensation Administration totaling $4.30; $2.30 must be paid by the employer and $2.00 withheld
from the employee’s wages.

Gross Receipts Tax
Instead of a sales tax, New Mexico imposes a Gross Receipts Tax, which is a tax imposed on persons engaged in business
in the state. In almost every case the business passes along the tax to the consumer, so the tax resembles a sales tax.
Sales and leases of goods and other tangible property are taxable. Sales and performances of services are also taxable in
New Mexico. The gross receipts tax rate for purchases made in the metro area ranges from 5.6875 to 7.3125 percent
throughout the MSA. The compensation tax (use tax) for purchases made outside New Mexico is 5.0 percent.

Property Tax
Unless otherwise expressly exempt, all tangible personal and real property located within New Mexico is subject to a tax
on the assessed value of property. Property is assessed by each county at the rate of 1/3 percent of value.
Property Tax Formula
Full Value of Property x 1/3 percent = Assessed Value
Assessed Value x Mill Levy Rate / 1,000 = Taxes Due
The mill levy rate is based on the location of the property and ranges from 18.448 to 43.917 of assessed value for
residential. For non-residential property, the mill levy rate ranges from 19.017 to 51.765 of assessed valued.

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Albuquerque MSA Location Profile
Incentives

Industrial Revenue Bonds
The Incentive
Significant real and personal property tax and compensating tax exemptions can occur through the use of an Industrial
Revenue Bond (IRB). An IRB is a loan from the bond purchaser to a company where the loan proceeds and repayment
flows through a governmental issuer. Instead of purchasing a facility directly, companies can enter into a lease with the
issuer, provided the company will lease the facility from the issuer and at end of lease, purchase the facility from the
issuer for a nominal amount. In Albuquerque, the maximum life of an IRB is 20 years.
IRBs can also be used when a developer is involved. A separate series of bonds is issued to finance the developerâ&#x20AC;&#x2122;s real
estate and building costs and the tax savings of the IRB can flow through to the ultimate user through a sublease.
The benefit of remaining property tax exemptions can be passed on to the new owner or flow though a lease in the event
of a sale or lease to a new user under certain qualifying conditions. City Council must vote to induce an IRB, and the
community does not lend its credit to an IRB. The company must secure its own purchaser of IRBs or the company can
purchase its own IRB.

Example
Assume a company invests $10,000,000 in Albuquerque: $5,000,000 in land and building, and $5,000,000 in
equipment purchased out of state:
Tax Exemption
Property Tax Exemption on Land and Building
Nominal value for 20 years:
Property Tax Exemption on Equipment (first year)
Nominal value for 7 years
Tax Exemption on Equipment

Out-of-state purchases subject to compensating tax rate of 5% are exempted. Property is assessed at 1/3 of book value. The current mill levy rate ifor a protion of
the City of Albuquerque is 46.805. Actual mill levy rate is based on location of property.

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Albuquerque MSA Location Profile
Incentives

Job Training Incentive Program
Incentive
The New Mexico Job Training Incentive Program is a highly flexible state program to provide on-the-job training. Customized
training may be provided by post-secondary educational institutions, company trainers, or outside trainers.

The state will reimburse
• Up to 55% of trainees’ wages up to 1,040 hours in urban areas
• 100% of classroom training costs provided by New Mexico post-secondary education institutions
• Partial expenses for travel and per diem required of trainees or company trainers. Travel and per diem
reimbursement is capped at 5% of trainee wage reimbursement.

Conditions
• Must be a new or expanding company in New Mexico that manufactures/produces a product or a non-retail
company that generates more than 50% of its service revenue from outside the state
• Contract customer service centers must meet or exceed at least 90% of the median county wage to qualify (currently
$12.20/hr in Bernalillo County)
• Maximum wage reimbursement is tied to hours required to learn the job and the hourly wage
• Applicants must be New Mexico residents for one year during their lifetime
• “Hands-on” or production jobs qualify; technical jobs such as first-line supervisors and engineering generally qualify;
support, administrative and sales positions are limited to 10% of total number of positions that qualify for funding
• Re-training does not qualify for assistance
• Companies can apply for subsequent assistance if they have maintained hiring levels that exceed the peak employment as
established by the initial application
• In urban areas, companies hiring more than 20 people must offer health insurance and subsidize at least 50% of the
premium for employees
• Temp to perm qualify provided trainees becomes full-time employees of the company prior to the end of the approved
training period; and trainees working through temp agency receive comparable medical, dental and vision benefits as full
time employees of the company
• Reimbursement is subject to availability of funds and approval by the Job Training Incentive Board

*Job Training Incentive Program provides reimbursement of 50% of wages in urban areas and 60% of wages in rural area.
Employees who meet the urban or rural High Wage Job requirements qualify for an additional 5% reimbursement.
**The Job Training Board uses the “O-Net” to determine the maximum allowable training hours for a position Proof of actual training hours will be required.

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Albuquerque MSA Location Profile
Incentives

High Wage Jobs Tax Credit
The Incentive
In 2004, the New Mexico State Legislature approved the High Wage Jobs Tax Credit, which provides businesses with a tax
credit equal to ten percent of the combined value of salaries and benefits for each net new job paying a salary of at least
$40,000 per year in the Albuquerque metropolitan area and other communities larger than 40,000 in population. The
value of the credit cannot exceed $12,000 per job. Qualified employers can take the credit for four years. The credit
can be applied against the modified combined tax liability of a taxpayer, including the state portion of gross receipts tax,
compensating tax and withholding tax.
Eligible jobs are those created by qualified employers after July 1, 2004 and prior to July 1, 2015.
In New Mexico, companies located in communities smaller than 40,000 persons, are eligible for a tax credit equal to
ten percent of the combined value of salaries and benefits paid for each new job created paying at least $28,000
annually.

Example Notes:
Assumes value of benefits at 25% of base salary per employee per year.
Assumes a service company generates more than 50% of its sales outside of New Mexico.

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Albuquerque MSA Location Profile
Incentives

Technology Jobs Tax Credit
In order to keep New Mexico competitive with the types of recruitment projects that continue to add value to the local
economy, the legislature enacted the Technology Jobs Tax Credit to give credit to qualified expenditures on qualified
research at qualified NM facilities.

The Incentive
Qualified New Mexico facilities may take a credit equal to 4% (8% in rural areas) of expenditures related to qualified
research for land, buildings, equipment, computer software and upgrades, consultants, technical books and manuals,
test materials, costs associated with patents, payroll, and labor. The credit may be taken against gross receipts tax,
compensating tax or state payroll tax, and may be carried forward.

Additional Incentive
An additional 4% (8% total urban, 16% total rural) may be applied against state income tax if base payroll expenses
increase by at least $75,000 per $1,000,000 of expenditures claimed. The credit may be carried forward.
Credits are not available for expenditures on buildings owned by a local government entity in conjunction with an
Industrial Revenue Bond or already owned by the taxpayer or an affiliate before 2/2/00.

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Albuquerque MSA Location Profile
Incentives

Manufacturing Investment Tax Credit
The Incentive
New Mexico tax law provides for a credit equal to five percent of the value of qualified equipment and other property
used directly and exclusively in a manufacturing operation. The credit can be applied against compensating or gross
receipts tax or withholding tax due. Gross receipts tax acts very much like a sales tax; the city rate is 6.75 percent.
Compensating (or use) tax applies to purchases made out of state and totals 5.0 percent.
The credit is limited to 85% of the sum of the taxpayerâ&#x20AC;&#x2122;s gross receipts tax, compensating tax, and withholding tax due
for the reporting period. Any remaining available credit may be claimed in subsequent operating periods.
The credit may be claimed for equipment acquired under an IRB. This is a double benefit since no gross receipts or
compensating tax was paid on the purchase or importation of the equipment.
The credit is available through 6/30/2011.

Criteria
For Claims
$0 - $30,000,000
Over $30,000,000

1 New Worker Employed for Each
$500,000 in qualified equipment
$1 million in qualified equipment

Alternative Energy Product Manufacturer’s Tax Credit
In 2007, the New Mexico State Legislature approved the Alternative Energy Product Manufacturer’s Credit which provides
for a credit equal to 5% of the value of qualified equipment and other property used directly and exclusively in a
manufacturing operation that makes components or systems for alternative energy products.
Alternative Energy Product: an alternative energy vehicle, fuel cell system, renewable energy system or any component of
an alternative energy vehicle, fuel cell system or renewable energy system or components for integrated gasification
combined cycle coal facilities and equipment related to the sequestration of carbon from integrated gasification
combined cycle plants.
The credit can be applied against compensating, gross receipts tax or withholding tax due. Any remaining credit can be
carried forward for up to five years.
The effective date of this credit is July 1, 2007.

Criteria
• Company must employ one new full-time employee for each $500,000 in qualified equipment up to $30,000,000 to
receive the credit
• Company must employ one new full-time employee for each $1,000,000 in qualified equipment over $30,000,000 to
receive the credit

Research & Development Small Business Tax Credit
A qualified small business is provided a credit equal to the sum of all gross receipts, compensating, and withholding
taxes due to the state or payable to New Mexico for a reporting period. A qualified business is a corporation, general
partnership or similar entity with fewer than 25 employees; revenues of less than $5,000,000 per year and qualified
research expenditures are equal to a least 20% of total expenditures in the year the credit is claimed
The credit is available for up to 3 years or until the first of the following occurs:
• Company employs more than 25-full time employees
• Has annual revenues in excess of $5,000,000
• Another business purchases more than 50% of the company
• Qualified annual research expenditures are no longer 20% of the company’s total expenditures
• The company has received an Industrial Revenue Bond

Conditions
• The credit must be claimed within one year after the end of the reporting period for which the credit is
applicable
• The credit does not apply to contract R&D performed for another company
• The company may not claim a credit with respect to the same reporting period for the Manufacturing Investment
Tax Credit or the Technology Jobs Tax Credit
• The credit sunsets June 30, 2009

Qualified Research
Qualified research (same as the Technology Job Tax Credit) is that which is undertaken for the purpose of discovering
information that is:
• Technological in nature,
• Intended to be useful in the development of new or improved business component
• Related to a new or improved function, performance, reliability or quality, but not related to style, taste,
cosmetic or seasonal design factors

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Albuquerque MSA Location Profile
Incentives

Interstate WATS Tax Exemption
New Mexico tax law provides for an exemption from interstate telecommunications gross receipts taxes (4.25%) for
receipts from the provision of wide-area telephone service (WATS) and private communications services. Therefore,
there are no local or state taxes on interstate WATS or private communications services. (Private communications
services are defined as dedicated services for a single customer that entitles the customer to exclusive or priority use of
a communication channel or group of channels between a location within New Mexico and one or more specified
locations outside the state.)

Child Care Tax Credit
New Mexico tax law provides for a corporate income tax credit of up to 30 percent of eligible expenses, net of
reimbursements for child care services incurred and paid by the taxpayer in the taxable year for dependent children of
their employees. A taxpayer that operates a child care facility used primarily by the dependent children of the taxpayer’s
employees may also claim a corporate income tax credit of up to 30 percent of the net cost of operating a child care
facility. The credit may not exceed $30,000 in any taxable year and unused credits can be carried forward for three
consecutive years.

Additional Incentives
Out-of-State Tuition Waiver and Lottery Funded Scholarships
UNM and CNM will make in-state resident tuition rates available to relocating employees and their families who qualify
for admission.
In addition, all resident New Mexican high school seniors with at least a 2.5 GPA are eligible for a New Mexico Lottery
Scholarship which pays for students to attend a state college tuition free. The scholarship is funded by a New Mexico
Lottery Program in which 100 percent of lottery net proceeds goes to the Lottery Tuition Fund.

Access to Local & State Government
This type of “incentive” is difficult to place a value on, however, many New Mexico companies explain that access to the
Governor of New Mexico and the Legislature is common and very valuable. This extends to local government as well as
to the state’s congressional delegation.

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Albuquerque MSA Location Profile
About AED

Albuquerque Economic Development
Albuquerque Economic Development, Inc. (AED), is a private, nonprofit, membership-based organization that is focused
on the recruitment of new industry into the Albuquerque Metropolitan Area and also assists with the retention and
expansion of existing industry. AED has served the Albuquerque area for forty-six years, recruiting more than 200
companies, which employ an estimated 20,000 persons. AED actively recruits those companies that will export goods or
services from New Mexico, thereby bringing new investment dollars to the state. These economic base jobs contribute to
the areaâ&#x20AC;&#x2122;s economic growth, development and diversification, thereby improving the standard of living and opportunities
within the Albuquerque area. A few examples of the companies AED has recruited or assisted include:
BF Goodrich Aerospace
Eclipse Aviation
Ethicon Endo-Surgery
Fidelity Investments
Gap Inc.
General Mills
Hewlett-Packard
Honeywell Defense & Space Electronic Systems
Intel
Prime Therapeutics
PR Newswire
SCHOTT Solar
Sennheiser Electronic
SUMCO USA
T-Mobile
Tempur-Pedic
Verizon Wireless

Albuquerque Economic Development, Inc. is eager to provide assistance specific to your companyâ&#x20AC;&#x2122;s location or expansion
needs, in complete confidence. Our team of economic development professionals is organized to help you obtain the
facts you need to thoroughly evaluate the Albuquerque metro area. We can save you countless hours of research and
analysis by providing a full complement of services, all at no cost or obligation to you. For more information about
expanding your business to the Albuquerque area, please visit our web site at www.abq.org or call (800) 451-2933.
You can also call any of our team members. For AED staff information, please see the following page.